Oprah's Favorite Things, Cramer's Favorite Stocks

The best stock picks for the holiday season don't come from Cramer. They come from Oprah. Every year she does a show devoted to her favorite products for Christmas. Investors should pay attention, because if consumers listen to anybody, they listen to Oprah.

This year, Oprah’s favorite things include products from Hasbro, the Discovery Channel, Deckers and Williams-Sonoma. The first three stocks are buys, Cramer said, but he wouldn’t go near Williams-Sonoma because housewares just aren’t selling.

Cramer likes Hasbro least of his three Oprah plays. The stock has some long-term potential with a couple high-profile toys scheduled over the next two years, and it’s come out generally unscathed from the toy recalls. Still, toy sales aren’t projected to be strong next year and this economy hasn’t been friendly to this bunch. Think of HAS as a two-year stock with some upside possible down the line, Cramer said.

Discovery Holdings , the majority owner of Discovery Communications (the actual company that manages the TV channel), had run up and then come back down since Cramer first recommended it in April, but now DISCA is in talks to buy the remaining stake of Discovery Communications and a buyback is being discussed, too. Those two catalysts are still in play even with the stock lower, Cramer said.

Deckers is Cramer’s favorite Oprah play. The company, which is the name behind the UGGs brand, is a “serial outperformer,” Cramer said. He recommended it two years ago and since then it’s up a staggering 444%. Deckers has since expanded beyond shoes and into handbags and earmuffs and has some of the strongest brands around. It also just beat earnings estimates last quarter and raised guidance. Cramer thinks it will do it again next time it reports.

Deckers doesn’t even need Oprah, Cramer said. Its brands are so strong that it works even with slowing consumer spending. In fact, DECK is one of the rare growth stocks Cramer is getting behind in this economy.

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